Gurgaon realty will bounces back from slowdown
The year 2017 turned out to be a challenging one for Gurgaon’s real estate sector, as developers found it almost impossible to manage, what they said, was the triple whammy of demonetization or recall of high value currency notes, implementation of Real Estate Regulatory Act 2016 and finally, the Benami (Transactions) Amendment Act, 2016. These things are effecting a lot to real estate of Gurgaon.
Experts people said that these three widely debated and documented moves changed the very dynamics of the city’s realty sector, as capital was sucked out of the system and investors fell on hard times. The fallout? Very few new project launches, price correction, little or no product promotion and a negative sentiment pervading the sector, as some developers almost went bankrupt. However, while sending builders into a nervous huddle, the set of tough building rules gave home buyers a much-needed weapon to take on the system.
In fact, claimed that unlike previous government, the Khattar regime wasn’t willing or ready to come to the rescue of the real estate sector. However, amid the dark clouds, there was a silver lining as affordable housing brought some cheer and money to the market. The second half of the year saw some recovery in the industry, with an increase in demand for Huda (Haryana urban development authority) plots, builder floors and ready to move in apartments. In sectors 22,23, 27, 45, 46, 57, 38,43, DLF, South City 1 and Sushant Lok, property prices went up by 15-20%.
Earlier, the risk capital was being borne by the buyers and if something went wrong, they suffered. However, RERA has changed the equation. Now, developers can’t use buyers’ funds for unlimited period and without any fear of penalty. Banks are not willing to give loans directly to developers and preferring, instead, to leverage the buyer’s credit, private equity was the only option of funding, which is 5-8% higher. “Private equity funds are very demanding and they work on strict timelines, which made it difficult for the industry to get money. Unless there is a major intervention (by the government), things will not improve.
The speculation in the real estate industry has almost ended. Though 2017 was a very challenging year, we expect things to normalize Gurgaon next year.Affordable housing and completion of crucial infrastructure projects will boost the market.developers and experts said that lack of clarity among policy makers with regard to land-pooling and transit-oriented development, under which the floor area ratio (FAR), has been increased, also did not help the cause of realty. They, however, admitted that affordable housing had been the savior for many of them and in the coming two years, more affordable projects and delivery of delayed homes is the key to revival of realty in Gurgaon.
Experts people said that these three widely debated and documented moves changed the very dynamics of the city’s realty sector, as capital was sucked out of the system and investors fell on hard times. The fallout? Very few new project launches, price correction, little or no product promotion and a negative sentiment pervading the sector, as some developers almost went bankrupt. However, while sending builders into a nervous huddle, the set of tough building rules gave home buyers a much-needed weapon to take on the system.
In fact, claimed that unlike previous government, the Khattar regime wasn’t willing or ready to come to the rescue of the real estate sector. However, amid the dark clouds, there was a silver lining as affordable housing brought some cheer and money to the market. The second half of the year saw some recovery in the industry, with an increase in demand for Huda (Haryana urban development authority) plots, builder floors and ready to move in apartments. In sectors 22,23, 27, 45, 46, 57, 38,43, DLF, South City 1 and Sushant Lok, property prices went up by 15-20%.
Earlier, the risk capital was being borne by the buyers and if something went wrong, they suffered. However, RERA has changed the equation. Now, developers can’t use buyers’ funds for unlimited period and without any fear of penalty. Banks are not willing to give loans directly to developers and preferring, instead, to leverage the buyer’s credit, private equity was the only option of funding, which is 5-8% higher. “Private equity funds are very demanding and they work on strict timelines, which made it difficult for the industry to get money. Unless there is a major intervention (by the government), things will not improve.
The speculation in the real estate industry has almost ended. Though 2017 was a very challenging year, we expect things to normalize Gurgaon next year.Affordable housing and completion of crucial infrastructure projects will boost the market.developers and experts said that lack of clarity among policy makers with regard to land-pooling and transit-oriented development, under which the floor area ratio (FAR), has been increased, also did not help the cause of realty. They, however, admitted that affordable housing had been the savior for many of them and in the coming two years, more affordable projects and delivery of delayed homes is the key to revival of realty in Gurgaon.
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